Correlation Between 225401AQ1 and Kenon Holdings
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By analyzing existing cross correlation between CS 2193 05 JUN 26 and Kenon Holdings, you can compare the effects of market volatilities on 225401AQ1 and Kenon Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in 225401AQ1 with a short position of Kenon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 225401AQ1 and Kenon Holdings.
Diversification Opportunities for 225401AQ1 and Kenon Holdings
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between 225401AQ1 and Kenon is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding CS 2193 05 JUN 26 and Kenon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenon Holdings and 225401AQ1 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CS 2193 05 JUN 26 are associated (or correlated) with Kenon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kenon Holdings has no effect on the direction of 225401AQ1 i.e., 225401AQ1 and Kenon Holdings go up and down completely randomly.
Pair Corralation between 225401AQ1 and Kenon Holdings
Assuming the 90 days trading horizon 225401AQ1 is expected to generate 3.55 times less return on investment than Kenon Holdings. But when comparing it to its historical volatility, CS 2193 05 JUN 26 is 1.12 times less risky than Kenon Holdings. It trades about 0.02 of its potential returns per unit of risk. Kenon Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,803 in Kenon Holdings on November 2, 2024 and sell it today you would earn a total of 1,282 from holding Kenon Holdings or generate 71.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.38% |
| Values | Daily Returns |
CS 2193 05 JUN 26 vs. Kenon Holdings
Performance |
| Timeline |
| CS 2193 05 |
| Kenon Holdings |
225401AQ1 and Kenon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 225401AQ1 and Kenon Holdings
The main advantage of trading using opposite 225401AQ1 and Kenon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 225401AQ1 position performs unexpectedly, Kenon Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kenon Holdings will offset losses from the drop in Kenon Holdings' long position.| 225401AQ1 vs. AEP TEX INC | 225401AQ1 vs. US BANK NATIONAL | 225401AQ1 vs. Reliance Global Group | 225401AQ1 vs. Bayerische Motoren Werke |
| Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. TransAlta Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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